* (New) Procurement Provision for MSMEs by Nations across the Globe

Edition: 2010                                                                                                                         No of Pages: 140
ISBN No. 9788190832885                                                                                     Format: Single user PDF

The importance of SME sector is well-recognized world over owing to its significant contribution in achieving various socio-economic objectives, such as employment generation, contribution to national output and exports, fostering new entrepreneurship and to provide depth to the industrial base of the economy. MSMEs in India contribute 39% of the industrial output, 33% of exports, 31 million in employment with exposure to greater opportunities for expansion and diversification across the sectors. The academic and policy literature recognizes this economic and social importance of the MSME sector. Despite its high importance, the MSME sector in India has always been neglected by the Government and the large enterprises.

Public procurement is another area where the MSMEs have been neglected. The process of the public procurement is not at all user-friendly and discourages MSMEs from even responding to the Government tenders. The size of public procurement in India is huge and can provide a high potential for growth to the MSME sector. It covers a wide range of supplies, services and works required by governments, local authorities and public organizations. The challenges that the MSMEs face in the area of public procurement are:

• Financial guarantees required
• High qualification levels and required certification
• Lack of knowledge about tender procedures
• Large size of contracts
• Low access to information about new opportunities
• Cost of preparing the proposal
• Huge administrative burdens

The best practices were evaluated by studying the public procurement policies of 22 nations, including Australia, Austria, Belgium, Canada, Denmark, Germany, Italy, Korea, Mexico, Netherlands, Spain, Thailand, UK and USA.

Comparative ranking was also done for assessment of the policies on the basis of each, structure-conduct, performance and the overall effectiveness of the policies. Based on these best practices, the following recommendations have been drafted for the Indian policy makers.

Executive Summary
1)  Introduction
2)  Methodology
3)  Scope of the project
4)  Australia
5)  Austria
6)  Korea
7)  Canada
8)  Denmark
9)  USA
10) Italy
11) Germany
12) Netherlands
13) Spain
14) Belgium
15) United Kingdom
16) India
17) Mexico
18) Thailand
19) Malaysia
20) Bangladesh
21) Sri Lanka
22) China
23) Pakistan
24) Philippines
25) France
26) The SCP Paradigm
27) Ranking
28) Key Observations
29) Best Practices
30) Recommendations for India
31) Annexures

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